Icici home loan default due to wakf claims of our half built home

1.My brother got a loan from icici to build house in a gifted land(500sqyards) from my dad. That land link documents We got them from 1956 from original seller.
2.We built 75% of the new house from the 16 lakhs taken from icici bank in 2005 of ( total sanctioned amount of 25 lakhs from icici bank.)
3.One day we got notice that further construction should be halted (from sub register office)as that land belongs to wakf board long back (aurangajeeb donated that land to mosque when he stayed there for hault while moving for a war), later farmers sold that land to subsequent owners before 1956)
4.We immediately intimated this situation to icici bank and requested them to wait until this dispute is settled. Instead they choose smartly to start emi for 16 lakhs with out our consent.
5.We completely shattered as we already spent about 30 lakhs all together(loan +14 lakhs) from our pockets in 2005.
6.We asked icici to be feasible regarding this situation but didn’t agree, so we gave up the property and didn’t bother to there emi’s.
7.They sent notice for foreclosure, we agreed for it and its auction. But nobody bought that property as everybody know its got litigation from wakfs board.
My query is that how much we are responsible to this home loan default and how icici bank is not. What are my rights, as icici bank reported to cibil that we are defaulters(even when we agreed to icici bank to auction the property). They even sent foreclosure advertisement as a mail to us.
Now due to this we couldn’t buy home even now because of bad cibil report(score:644 and default status: blank, amount od:17lakhs, till date due:27lakhs).
Is there any way to fight back for getting our cibil rating unaffected and settle the issue in neutral terms of court (and what are our prospects and rights to do so). Or its just for us to suffer our bad fate.

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